In the latest trading session, Walmart (WMT) closed at $89.76, marking a +1.05% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.67% for the day. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 0.87%.
The world's largest retailer's stock has dropped by 6.47% in the past month, exceeding the Retail-Wholesale sector's loss of 6.91% and lagging the S&P 500's loss of 5.28%.
Analysts and investors alike will be keeping a close eye on the performance of Walmart in its upcoming earnings disclosure. On that day, Walmart is projected to report earnings of $0.59 per share, which would represent a year-over-year decline of 1.67%. In the meantime, our current consensus estimate forecasts the revenue to be $165.92 billion, indicating a 2.73% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.63 per share and a revenue of $703.77 billion, indicating changes of +4.78% and +3.35%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Walmart. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.21% lower. Walmart is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Walmart is at present trading with a Forward P/E ratio of 33.81. Its industry sports an average Forward P/E of 13.07, so one might conclude that Walmart is trading at a premium comparatively.
One should further note that WMT currently holds a PEG ratio of 4.72. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Supermarkets was holding an average PEG ratio of 2.18 at yesterday's closing price.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 149, finds itself in the bottom 41% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Walmart Inc. (WMT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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